Progressive Shares Are Tumbling Today After Q2 Earnings Missed Analyst Consensus

Progressive Corp PGR shares are trading lower by over 6% after it reported below-consensus second-quarter (Q2) results.

The company disclosed Q2 net premiums earned an increase of 19% Y/Y to $14.46 billion, which missed the consensus estimate of $14.98 billion.

Net premiums written rose 18% Y/Y at $14.72 billion in the quarter.

Adjusted EPS of $0.40 missed the analyst consensus estimate of $0.87.

The combined ratio was 110.4% in Q2 vs 95.6% a year ago.

Total available-for-sale securities stood at $55.6 billion at the end of the quarter.

In June, the company witnessed net premiums earned of $4.5 billion (+20% Y/Y) and net premiums written of $4.3 billion (+11% Y/Y).

Total policies in force grew 12% Y/Y to 29.6 million in the month. 

Related: Progressive Shares Up 5% On 26% Increase In April Net Premiums Written

Also, auto accidents settled for more than what was reserved. So, in June, the Mayfield, Ohio-based company witnessed unfavorable prior accident year reserve development of $137.8 million.

Price Action: PGR shares are down 6.63% at $123.35 premarket on the last check Thursday.